« ForrigeFortsett »
not inconsistent with the laws and the Constitution of this State and of the United States, and that no reasonable objection exists thereto, he shall approve said articles or contract as submitted, and shall cause the same to be recorded in a book kept for that purpose. If the Director of Trade and Commerce shall refuse to approve such articles of consolidation or contract of reinsurance, notification of such refusal, assigning the reasons therefor, shall, within fifteen days from the date of submission to him of such articles or contract, be given in writing by such director to each of said companies parties thereto. No articles of consolidation or contract of reinsurance shall take effect unless and until the provisions of this Act have been complied with and the approval of the Director of Trade and Commerce has been obtained as herein provided. § 7. Any resident company, desiring to reinsure its fire or casualty business, in lieu of complying with sections 4, 5 and 6 of this Act, may, for good cause shown to the Director of Trade and Commerce and subject to the conditions hereinafter set forth, enter into a reinsurance contract with another company when a resolution authorizing the same has been duly adopted by its board of directors or other managing body. Said company shall thereupon file with the said DiTector of Trade and Commerce a conv of said contract and copies of all papers relating thereto, certified under the seal of said corporation to be true and correct copies of the originals, which said certificate shall be signed and verified by the affidavits of the president and secretary of said company, or executive officers corresponding thereto. If the said Director shall find no reasonable objection to such contract, he shall approve the same; provided, that in case either of the parties to said contract is a mutual company, then the reinsuring company shall forthwith mail to each person holding a policy so reinsured a notice of the fact of such reinsurance, and the said reinsurance shall take effect when and not until the said contract has been approved as aforesaid, and there shall have been filed with the said Director an affidavit, signed by the president or secretary of such reinsuring company, having knowledge of the fact that a notice has been mailed to each policy holder as aforesaid: Provided, further, that if not less than five per cent of such policy-holders so reinsured shall, within thirty days after the filing of such affidavit, file a petition with the said Direcfor of Trade and Commerce for a hearing on the question of such reinsurance, the Director of Trade and Commerce shall order a hearing on the said petition, notice of which shall be given by the reinsuring Company, by mail, to each holder of a policy so reinsured, at least ten days before such hearing. At the time and place fixed in such notice, or at the time or times and place or places to which such hearing shall adjourned, the Director of Trade and Commerce shall proceed with the hearing and may make or order such examination into the affairs and condition of either or both of such companies as he may deem proper. Said Director shall have the power to summon and commel the attendance and testimony of witnesses and the production of books and Papers before him at such hearing. Any policy-holder or stockholder, as the case may be, of the company so petitioning may appear before said Director and be heard with reference to said reinsurance. If upon such hearing being had, said Director is not satisfied that the interests of the policy-holders or stockholders, as the case may be, of such company are properly protected, or if he finds that any reasonable objection exists to such reinsurance, he shall revoke the approval already given, and the said contract of reinsurance shall thereupon become null and void. And said Director shall have like power to revoke any approval of any such contract of reinsurance if any officer, director or employee of either company party to such reinsurance shall, after reasonable notice, fail or refuse to attend and testify at such hearing, or to produce any books or papers called for by said Director.
§ 8. Any resident fraternal benefit association or society desiring to enter into a contract of consolidation or reinsurance may follow the procedure set forth in this section in lieu of complying with the provisions contained in sections 4 and 5 hereof. Such consolidation or reinsurance shall be evidenced by a contract in writing, setting forth in full the terms and conditions thereof. The board of managers, directors or trustees of such association or society shall submit such contract to the supreme legislative and governing body of such association or society at any regular or special meeting thereof, provided, a full, true and correct copy of such proposed consolidation or reinsurance shall be given with the notice of such meeting. Such notice shall be given as provided in the laws of the respective association or society for the convening of such supreme legislative and governing body in regular or special session, as the case may be. The affirmative votes of two-thirds of all members of such supreme legislative and governing body shall be necessary for the approval of such contract; provided that the provisions of the law or the certificate of association of any such society or association with reference to age limit and as to medical examination shall, for the purposes hereof, be declared to be inoperative in so far as contracts contemplated herein are concerned.
§ 9. In case of a consolidation or contract of reinsurance between a resident and a non-resident company, the articles of consolidation or the contract of reinsurance shall be executed by the proper officers of said non-resident company when they are duly authorized thereto by such action on the part of the directors, stockholders or members of said non-resident company as may be required by the laws of the state where the same is incorporated; and upon execution, said articles of consolidation or contract of reinsurance shall be submitted to the commissioner of insurance or other officer at the head of the insurance department in the state where such non-resident company is incorporated ; and no such consolidation or contract of reinsurance shall take effect until it shall have been approved by the Director of Trade and Commerce of this State, and by such insurance official of the state where said non-resident company is incorporated, and a certificate of his approval, signed by such proper official of such state, has been filed in the office of the Director of Trade and Commerce of this State: Provided, that such submission to and approval by the proper official of such other state shall not be required unless the same are required by the laws of such state.
No such consolidation or contract of reinsurance between a resident and non-resident company shall take effect, unless and until the consolidated or reinsuring company, if such company is a non-resident, shall file with the Director of Trade and Commerce of this State a power of attorney appointing said Director of Trade and Commerce, and his successors in office, or any official who shall hereafter be charged with the supervision of the business of insurance in this State, the attorney for service of said non-resident company, upon whom all lawful process against said company may be served. Said power of attorney shall be irrevocable so long as said non-resident company has outstanding in this State any contract of insurance, reinsurance or other obligation whatsoever, and shall by its terms so provide. Service upon said attorney shall be deemed sufficient service upon the company. § 10. If the state in which a non-resident consolidated company, or non-resident company reinsuring the risks in whole or in part of a resident company, is incorporated shall require the maintenance with any official of such state of a deposit of the legal reserve on the policies so assumed, and such non-resident company shall maintain such deposit, then the Director of Trade and Commerce of this State is authorized to deliver to the proper custodian of such funds in the state in which the said non-resident company is incorporated such deposits as he may hold pertaining to the policies so assumed by the consolidated or reinsuring company. If a consolidated or reinsuring resident company assumes the risks, in whole or in part, of a non-resident company incorporated in a state which requires the maintenance with a state official of a deposit of the legal reserve on the policies so assumed, then the Director of Trade and Commerce of this State is authorized to receive from such official such deposits as he may hold pertaining to the policies so assumed. Such consolidated or reinsuring company shall, within sixty days after the transfer of such deposit, notify the holder of every policy secured by such transferred deposit that the transfer has been made; and the president and secretary of such company shall, within thirty days thereafter, file with the Director of Trade and Commerce an affidavit of the fact that due notification to policy-holders, as provided for herein, has been given. The amount of deposit to be maintained from time to time for each policy on which liability is assumed shall be at least equal to the amount which would be required in the state where such deposit has theretofore been maintained. Except as herein otherwise provided, such deposit so maintained in this State shall consist of securities authorized by, and shall be subject to, and transactions in regard thereto shall be regulated by the provisions of an Act of this State entitled, “An Act to provide for the deposit of reserve and the registration of policies and annuity bonds by life insurance companies of this State”, ap!. April 18, 1899, in force July 1, 1899, and all Acts amendatory ereof. § 11. Whenever articles of consolidation or a contract of reinsurance shall be filed with the Director of Trade and Commorce, there shall also be filed with him a certificate, executed by the president and —39 L
attested by the secretary, or the executive officers corresponding thereto, and under the corporate seal of each of the consolidating or contracting companies, verified by the affidavits of all such officers, setting forth all fees, commissions or other compensations or valuable considerations paid or to be paid, directly or indirectly, to any person or persons, firm or firms, corporation or corporations whomsoever, for in any manner securing, aiding, promoting or assisting in any such consolidation or reinsurance. § 12. No director, officer, or member of any such company or companies, except as fully expressed in the articles of consolidation or contract of reinsurance, shall receive any fee, commission, other compensation or valuable consideration whatever, directly or indirectly, for in any manner aiding, promoting or assisting in such consolidation or reinsurance. § 13. Any person violating the provisions of section 12 of this Act shall be punished by a fine of not less than one thousand dollars and not more than five thousand dollars, or by imprisonment in the county jail for not more than one year, or by both fine and imprisonment, as may be determined by the court. § 14. No action or proceeding, pending at the time of the consolidation or reinsurance, to which either of the consolidating companies or the contracting companies may be a party, shall be abated or discontinued by reason of such consolidation or reinsurance, but the same may be prosecuted to final judgment in the same manner as if the consolidation or reinsurance had not taken place, or the consolidated or reinsuring company, if the reinsurance agreement so provides, may be substituted in place of any such company so consolidated or reinsured, as the case may be, by order of the court in which the action or proceedings may be pending. § 15. An Act entitled, “An Act in relation to consolidation and reinsurance of life insurance companies”, approved May 29, 1909, in force July 1, 1909, and all Acts or parts of Acts inconsistent herewith. are hereby repealed. Approven June 28, 1919.
§ 1. Amends section 8, Act of 1877. $ 8. Property insured—policies —duration — amountobligations.
(SENATE BILL No. 346. APPRoved JUNE 23, 1919.)
AN ACT to an end section S of an Act entitled: “An Act to organize and regulate county fire insurance companies,” approved June 2, 1877, in force July 1, 1877, as amended. SECTION 1. Be it enacted by the People of the State of Illinois. represented in the General Assembly: Section 8 of an Act entitled: “An Act to organize and regulate county fire insurance companies.” approved June 2, 1877, in force July 1, 1877, as amended, is amended to read as follows: § S. Such companies may issue policies only on detached dwellings, barns (except livery, boarding and hotel barns) and other farm build
ings, school houses and churches and such property as may be properly contained therein; also other property on the premises and owned by the insured; also live stock (hay and grain in the stack) on the premises of the insured, and anywhere in the territory of the company for any time not exceeding five years and not to extend beyond the limited duration of the charter, and for an amount not to exceed fifteen thousand dollars ($15,000) on any one risk. Said policies may cover loss of, or damage to, live stock, harness and vehicles temporarily taken from the territory of the company: Provided, said live stock, harness and vehicles be not removed to exceed twenty-five miles from the territory of the company. All persons so insured shall give their obligations to the company, binding themselves, their heirs and assigns, to pay their pro rata share to the company of the necessary expenses and of all losses by fire or lightning which may be sustained by any member thereof during the time for which their respective policies are written and they shall also, at the time of effecting the insurance, pay such percentage in cash and such other charge as may be required by the rules and by-laws of the company. APPROVED June 23, 1919.
county MUTUAL windstory. INSURANCE companies.
§ 1. Ajo, sections 3, 14 and 16, Act § 14. Annual statement. o 89. § 16. Statement of condition § 3. Number of directors— to be filed with Diquorum—manner of - rector of Trade and
election. Commerce—fee. (Hous E BILL No. 193. APPROVED JUNE 6, 1919.)
AN ACT to amend sections 3, 1, and 16 of an Act entitled, “An Act to authorize the organization and to regulate county mutual windstorm insurance companies”, approved June 4, 1889, in force July 1, 1889. SECTION 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That sections 3, 14 and 16 of an Act entitled, “An Act to authorize the organization and to regulate county mutual windstorm insurance companies”, approved June 4, 1889, in force July 1, 1889, be amended to read as follows: § 3. The number of directors shall be not less than nine nor more than fifteen, a majority of whom shall constitute a quorum to do business—to be elected by ballot from the corporators and hold their offices until their successors are elected and qualified. In the election of the first board of directors each corporator shall be entitled to vote in the manner as hereinafter designated. All subsequent elections, except to fill vacancies, shall be held at the annual meeting of the company, which shall be on the second Saturday in January in each year, and every person insured shall be entitled to cast in person by ballot one vote for each one of the number of directors to be elected. § 14. It shall be the duty of the secretary to prepare an annual statement showing the condition of such company on the thirty-first day of December and present the same at the annual meeting.